3 Sub-contracting rules to be aware of when responding to tenders

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017. Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

Finding Sub-contractors

These categories are:

  • Black female owned EME's or QSE's;
  • Black youth owned EME's or QSE's;
  • Black owned EME's or QSE's.

After the Preferential Procurement Regulations were gazetted there is a need for businesses to find sub-contractors.

But where are businesses, which respond to tenders, going to find sub-contractors? We have thought about this and one answer is at Briefing Sessions.

Sub-contractors versus Consortiums and Joint Ventures

The Preferential Procurement Regulations, 2017 states that 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME's. These SMME's include, but are not limited to, black female owned and black youth owned businesses.

Tenders and Subcontracting

Tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so commonly placed that in South Africa there are specific rules regulating subcontracting in executing tenders. This is especially true for South African Government tenders.

Pages

Title Closing Date Tender No.
Appointment of a Maximum of Three (03) Contractors for Upgrading of Various Municipal Buildings and Facilities at Service Centre (Magasyn), Middelburg 2018-10-16 12:00 BS40/08/2018
Panel of service providers to provide Silviculture for a period of three years. 2018-10-19 12:00 RFB105/2018
Supply and Deliver Toilet Ablution Container Nasaret Cemetery, Middelburg 2018-10-16 12:00 BS01/09/2016
Data cleansing and debtors collection. 2018-10-19 12:00 T2018/09/18/DCDC
Supply, Deliver and Install 26 Doors at the Community Halls in Middelburg 2018-10-16 12:00 BS 02/09/2018
Supply, delivery and installation of finger jointing mechanised planer for Timbadola Sawmill. 2018-10-19 12:00 RFB 104/2018
Supply and delivery of RG12 MK2 (Nyala) multi-purpose armoured personnel carriers for the City of Cape Town. 2018-10-22 10:00 85G/2018/19
Travel, accommodation and conference services. 2018-10-22 11:00 ARC/11/09/18
Supply: Hp 37a black original laserjet toner car 2018-09-27 11:00 GM11900254
Supply and deliver New Control Centre Workstations for Emergency Services. 2018-09-28 12:00 Q18.09.18
Supply: Gcb fusion laminator a3 max. 2018-09-27 11:00 GM11900255
Request for Proposals to Package 5- Minute Series or Stand alone Packages of Radio Features on Rise Fm,94.3 for a Period of 6 (Six) months 2018-09-28 12:00 Q15.09.18
Supply: Hardware items 2018-10-02 12:00 GG11900516
Request For Proposals to Package 5 Minute Series Or Stand Alone Packages of Radio Features on Greater Middelburg and Emalahleni Fm for a period of six (06) months 2018-09-28 12:00 Q16.09.18
Supply: Medical supplies 2018-10-01 15:00 GF11900250
Request for Proposals to Package 5-Minute Series or Stand Alone Packages of Radio Features on Radio Kragbron,93.1 Fm and Kosmos Sterio, 99.3 Fm for a period of Six (06) months 2018-09-28 12:00 Q17.09.18
Supply and delivery of projectors. 2018-10-02 11:00 GK11900122
Supply and Delivery of Guardrail 2018-09-28 12:00 Q14.09.18
Supply of Food for Standby Teams (as and when required) for Civil Engineering Services Employees 2018-09-28 12:00 Q19.09.18
Supply & delivery of LDV's to Kouga Municipality. 2018-10-22 12:00 169/2018

Pages

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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